Power company proposes 4.5 percent raise in gas/electric bills

San Diego Gas & Electric Co. is proposing a 4.5 percent
average rate increase for natural gas and electricity customers
starting in January 2008. Under the proposal, natural gas rates
would increase 6.7 percent, or $3.67, and electricity rates would
increase 2.8 percent, or about $2, for customers with typical
monthly usage, officials said.

If approved by the California Public Utilities Commission after
it gets public input, the increases would generate $1.4 billion per
year in additional revenue.

Ed Van Herik, SDG&E spokesman, said the money would go
toward many different areas, but two of the most important are
price increases for raw materials, such as steel and copper, and
infrastructure improvements. Steel and copper are used to make
electric wires and other utility products.

Michael Shames, executive director of Utility Consumers' Action
Network, said SDG&E tried to get a rate increase two years ago.
Instead of a rate increase that would have generated $100 million,
the California PUC decided to cut rates and cost SDG&E $25
million, he said. UCAN began as a consumer watchdog for SDG&E,
he said, before it expanded into the state's gasoline industry and
other fields.

"SDG&E will have to be able to prove these costs," he said.
"I want to do more investigating."

Under the proposal, customers in inland communities, such as
Escondido, would see electricity rates increase $1.43 if they use
500 kilowatt hours of electricity during the summer. Coastal
community customers, such as Oceanside residents, would see a $2.10
increase at 450 kilowatt hours. Customers using less than those
rates wouldn't see an increase, and SDG&E said those figures
represented about the average customer usage for those areas.

For example, Escondido customers using 500 kilowatt hours would
see their bills increase from $70.89 to $72.33. An Oceanside
customers using 450 kilowatt hours would see their bills increase
from $70 to $72.10.

After a customer uses more than those amounts of electricity,
rates increase $4.35 for every 100 kilowatt hours after that for
both zones. An SDG&E official didn't have a breakdown of
natural gas increases.

The rate increases are far from a done deal. Before the PUC
signs off on the rate change, it must first set up a time for
customers affected by the increases to voice their opinions.
Customers could be able to give their opinions during SDG&E's
operations review before the PUC. The review starts Sept. 22,
includes five more meetings, and concludes no later than February.
SDG&E officials couldn't confirm when the public would have a
chance to speak about the rate increases.